As a small business owner, you’re probably familiar with how challenging shipping can be. Some parts can be frustrating especially if you’ve just started. If you are tired of all the opaqueness associated with the eCommerce shipping process, and you just want things to be simpler for you. Here are 10 Tips for Small Businesses in eCommerce.
Shipping cost 101
Before you decide shipping rates and models for your product, it is essential to understand how these fulfillment costs are actually calculated. As a business, you need to figure out what factors help in the derivation of the shipping rates.
Shipping costs are calculated based on:
Service and speed
After the sale of a product, the next step in the fulfillment of the order. Customers expect and appreciate quick deliveries. Quick deliveries assist in keeping up the momentum between the customer and the seller. Companies like Amon are setting the bar higher for smaller businesses. While placing an order, customers also expect cheaper and free delivery. This is difficult as expedite deliveries simply need a higher shipping rate. carriers offer a wide range of services that depend on many other factors. It is important to understand the requirements of your shipment as it given=s you a better understanding of how to estimate your shipping costs.
Determine whether shipping cost will be included in the product cost:
There are a lot of factors that influence the shipping rates. You can choose to include the shipping cost in the price of the product, customers don’t feel like they are paying an additional fee in this case. You can waive shipping and handling fees for your customers to reduce drop off if you wish to do so.
For example: $25 + $5 shipping. Here, $25 is the price of the product.
$30 + free shipping. Here the price of the product is $30, it is inclusive of the shipping charges.
Dimensions and weight of the product
Just like an expedited delivery, the weight of the product also affects the shipping charges. Carrier services calculate the shipping rate based on the weight and dimension. Some carrier services consider the dimensional weight. Dimensional weight is the size of the entire package rather than it’s the actual weight. DIM can also be calculated using: Length x Weight x Height/ Divisor. In simple words, you will be charged higher for larger lighter parcels and lesser for small but heavier parcels.
The final factor is the distance from which the parcel has to travel. That is the distance between the shipper’s address and the recipient’s address. While shipping to international destinations, confirm permissions, as certain products fall under forbidden from entering some country. Selling to international customers is more expensive.
Managing your shipping volume
Establishing a great relationship with the carrier service that you choose is crucial. Some additional cost that you can save up because of this are:
Most carrier services have a default insurance value. The value may differ as each carrier service is different from the other.
Outsourcing packaging can decrease your workload and delegate the work to a professional. While packaging carrier services look after the insulation, cushioning, custom boxes and envelopes as well.
What you get with a 3PL insurance
Third-party insurance gives you more coverage and assurance. Shipsurance has one of the best shipping insurance deals.
Returns are an inevitable part of any business. Returns are the real issue of an online business. They can have a negative financial impact on e-commerce. Buying online has a higher chance of customers returning products because they don’t get to physically inspect products. Managing returns can be a tedious process. Having a return policy that I focused on the customer reduces the risk for the customer.
The way returns handled can affect customer loyalty. This process needs simplification and hassle-free. Most customers would just prefer dropping it off to the post office. When a product is returned, a retailer factors the following costs- Labour, Reselling, damaged goods, transportation.
What do small business owners need most?
Sell through multiple channels
Most businesses find success in selling products through their own established website, multi-channeling seems the right way forward for selling more. Users who use multiple platforms to sell, end to sell more. In simple words, the more channels you add, the more products you end up selling.
Use multiple carriers
Each carrier has its unique strengths and weaknesses while choosing a carrier service, choosing the most efficient and feasible one. The secret is to find the best shipping solution to serve the needs of your business, and try to mix and match your carriers.
Outsource fulfillment management
For many small businesses, management of the fulfillment process can be overwhelming. hence, outsourcing your warehousing and fulfillment process means letting a professional look after a smooth trip of the parcel from the shipper to the customer. Considering a third-party logistics (3PL) might be a good option for your business.
10 tips for small businesses to save money on shipping
- Understand how (Dimensional weight) DIM works.
- Don’t forget to negotiate with your shipping carrier
- Package well enough to avoid damage
- Take advantage of flat rate shipping
- Consider offering free shipping on orders beyond a certain value
- Track your orders in real-time
- Always remember to audit shipping invoices regularly
- Include the cost of shipping in the final bill
- Consider partnering up with a fulfillment center
- Invest time in comparing each carrier’s small business shipping options.
We’ve been through everything that you need to feel a little less burdened. thus, don’t let the touchpoints of the fulfillment process scare you. As a growing business, finding cost-effective methods should be your goal. Investing in shipping will assure you a good brand and customer experience.
Hence, Dash101 – A business cum shipping partner. The logistics aggregator delivers over 27000+ pin codes across the country along with 8 courier integrations and channel integrations. Alongside reduced RTO and seamless shipping experience, Dash101 looks after everything moves out of the warehouse and delivers to the customer.
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